RIYADH: Startups across the Middle East and North Africa region continue to attract significant investment, with fintech, cybersecurity and artificial intelligence-driven ventures leading the charge.
Recent funding rounds and acquisitions highlight the region’s growing appeal to investors, particularly in Saudi Arabia, the UAE and Egypt.
Saudi Arabia-based cybersecurity firm CQR raised $3 million in a funding round led by Shorooq. Founded in 2023 by Naser Al-Dossary, the company provides AI-driven, product-based cybersecurity solutions for businesses.
“Cyber threats in OT (operational technology) environments are evolving rapidly and traditional security models are no longer enough,” Al-Dossary said.
“At CQR, we are reengineering cybersecurity for industrial operations — building innovative, product-driven solutions that make OT security accessible, efficient and highly scalable.”
The investment will enable the company to scale operations and enhance its AI capabilities.
Al Madinah Angels launched to boost entrepreneurship in Saudi Arabia
A group of investors has launched Al Madinah Angels to support startups as part of Al Madinah Ventures Initiatives.
The network is a collaboration between Value Makers Studio, Madinah Chamber and Numu Angels.
It aims to help founders turn ideas into viable ventures and contribute to the region’s economic growth.
This follows the launch of Al Madinah Ventures late last year, a $10 million investment fund initiated by VMS in collaboration with the Economic Development Center and the Madinah Chamber of Commerce.
DHL eCommerce acquires Saudi logistics company AJEX
DHL eCommerce, the logistics arm of DHL Group, has acquired Saudi-based parcel logistics company AJEX for an undisclosed amount.
Founded in 2021 and backed by Ajlan & Bros Holding, AJEX offers express distribution, e-commerce services and freight solutions across Saudi Arabia, the UAE and Bahrain, as well as the US, UK, Turkiye, South Africa and China.
Flow48 raises $69m series A to expand in Saudi Arabia, UAE
UAE-based fintech Flow48 has secured $69 million in a series A funding round comprising debt and equity.
The round was led by Breega, with participation from 212, Speedinvest, Daphni, Endeavor Catalyst, Evolution Ventures and Plus VC.
Founded in 2022 by Idriss Al-Rifai, Flow48 provides small- and medium-sized enterprises with upfront financing by transforming future revenues into immediate capital.
The funding will support its expansion in Saudi Arabia and the UAE. In November 2023, the company closed a $25 million pre-series A round.
At CQR, we are reengineering cybersecurity for industrial operations — building innovative, product-driven solutions that make OT security accessible, efficient and highly scalable.
Naser Al-Dossary, CQR cofounder and CEO
Pinewood.AI acquires Seez in $46.2m deal
UK-based automotive intelligence platform Pinewood.AI has agreed to acquire UAE-founded autotech company Seez for $46.2 million in cash and shares.
The share component is expected to increase over the next three years.
Established in 2016 by Tarek Kabrit and his nephew Andrew Kabrit, Seez provides car dealerships and original equipment manufacturers with software solutions to enhance customer experience and sales.
Last year, the company raised $4.2 million and has since expanded to 16 markets, including Mexico and Australia.
Omnispay secures $1.5m seed round to enhance SME financial solutions
UAE-based fintech omnispay has raised $1.5 million in a seed funding round led by Mercatus Capital Pte., with participation from regional and international investors.
Founded in 2022 by Simanta Das, Vimal Kumar and Praveen Kiran, omnispay provides an all-in-one platform for small- and medium-sized enterprises to manage cash flow through collection, payment and lending services.
The company claims to have signed up more than 1,600 businesses with strong month-on-month growth.
Disrupt.com commits $100m to AI-first startups
UAE-based venture builder Disrupt.com has pledged $100 million to fund AI-first technology ventures globally.
Founded by Aaqib Gadit, Uzair Gadit and Umair Gadit, the firm will focus on AI, cybersecurity, Web 3.0, automotive technology and retail innovation.
To date, Disrupt.com has deployed more than $40 million across its portfolio, including investments in early- and growth-stage companies, as well as an exit valued at $350 million.
Journify raises $4m to expand customer data solutions
UAE-based software as a service provider Journify has secured $4 million in funding led by Silicon Badia, with participation from RZM and other investors.
Founded in 2023 by Taoufik El-Jamali and Amine Chouki, Journify helps businesses maximize the value of their customer data. The investment will support its expansion efforts.
Fawry invests $1.6m in three Egyptian fintech startups
Egypt-based fintech giant Fawry has invested $1.6 million to acquire a 56.6 percent equity stake in Virtual CFO and 51 percent stakes in both Dirac Systems and Code Zone. Founded in 2008, Fawry is Egypt’s largest e-payment platform, providing electronic bill payments, mobile top-ups and business services.
These investments align with its strategy to expand its business solutions ecosystem, Fawry Business.
Egypt’s fintech sector sees 5.5x growth in 5 years
Egypt’s fintech sector has grown 5.5 times over the past five years, driven by digital payments, lending and business to business marketplaces, according to a report by Entlaq, in collaboration with the Netherlands Enterprise Agency and the Dutch Embassy in Egypt.
Government initiatives and the Fintech & Innovation Strategy have accelerated financial inclusion and digital transformation.
However, regulatory complexities, digital literacy gaps and cybersecurity risks remain key challenges.
Basata increases stake in Jordan’s MadfoatCom to 25 percent
Egypt-based fintech Basata has raised its stake in Jordanian e-payment firm MadfoatCom to 25 percent.
The acquisition is part of Basata’s strategy to enhance digital financial inclusion and strengthen Jordan’s digital payments infrastructure.
Basata, formerly known as Ebtikar, was formed in 2009 through the merger of Masary and Bee and specializes in bill payments, mobile money and supply chain solutions.
MadfoatCom, founded in 2011 by Nasser Saleh, provides an online, real-time bill presentment and payment system.
Lola raises $1.3m to expand food tech business in GCC
Bahrain-based food tech startup Lola has secured $1.3 million in a pre-seed funding round from Plus VC, Vision Ventures and angel investors.
Founded in 2023 by Othman Janahi, Lola provides customizable cake ordering services in Bahrain and Saudi Arabia.
The investment will support its expansion into Saudi Arabia and the wider Gulf Cooperation Council region.
Lillia secures $1.7m grant to expand AI-powered health tech platform
Qatar-based health tech startup Lillia has raised a $1.7 million grant from the Qatar Research, Development and Innovation Council.
Founded in 2020 by Sujit Chakrabarty, Lillia was created through the 2024 merger of Qatar-based Droobi Health LLC and India-based Smit.fit.
Its AI-powered platform helps healthcare providers, insurers, corporations and public sector entities manage chronic diseases.
Lillia plans to expand across MENA and Southeast Asia in the next two years.
Cashfree Payments secures $53m to expand in MENA
India-based payments solutions provider Cashfree Payments has raised $53 million in a funding round led by South Korean digital entertainment company KRAFTON, with participation from Apis Partners.
The investment will support Cashfree’s expansion in the UAE and the broader MENA region, strengthening its position in the digital payments market.
Cashfree currently operates in the Middle East through a strategic partnership with UAE-based payments firm Telr, which it invested in three years ago.
With the new funding, the company aims to scale its offerings to businesses across the region, leveraging its expertise in India’s fintech sector, where it processes $80 billion in annual transactions.
